March of the CitiesThe Urban RevolutionDavid E. Bloom and Tarun Khanna
The year 2008 marks a watershed in the complex and ongoing urban revolution. For the first time, more than 50 percent of the world's people will live in urban areas. Rapid urbanization may prove a blessing, provided the world takes notice and plans accordingly.
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Urban PovertyMartin Ravallion
The poor are gravitating to towns and cities, but maybe not quickly enough. A faster pace of urbanization could induce more rapid poverty reduction. Development policymakers should facilitate this process, not hinder it.
(pdf file: 299 kb)

Big, or Too Big?Ehtisham Ahmad
Megacities create special issues of governance, funding, and provision of services. Both national governments and megacities can secure potential benefits by exploring the devolution of clearly defined responsibilities and revenue-raising capacity that provide incentives for good governance.
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Also in This IssueChina's Rebalancing ActJahangir Aziz and Steven Dunaway
China's economic miracle may be at risk unless the country relies more on domestic consumption. But a rebalancing of the economy is unlikely to happen on its own. What's needed is adjustment based on monetary policy, price liberalization, financial market reform, and changes in government expenditure policies.
(pdf file: 424 kb)

Solving China's Rebalancing PuzzleJonathan Anderson
Market forces will do the trick "naturally." Real rebalancing involves a slowdown in investment and a drop in net exports rather than a further pickup in urban consumption, and this is by far the most likely scenario through the end of the current decade.
(pdf file: 325 kb)

Point of ViewChina's Approach to ReformHu Xiaolian
The Deputy Governor of the People's Bank of China gives an account of China's approach to development and economic reform, including efforts to promote consumption and consumer credit, reform the exchange rate regime, and improve macroeconomic management.
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China's Export BoomMary Amiti and Caroline Freund
China's exports are not only booming, they are also becoming more sophisticated. An IMF study shows China moving out of agriculture, apparel, and textiles into electronics and machinery.
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China's Growing External DependenceLi Cui
China is no longer just an assembler of imported inputs. The domestic content of China's exports is increasing and its economic fortunes are increasingly tied to those of the global economy.
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Helping the Global Economy Stay in ShapeCarlo Cottarelli and Isabelle Mateos y Lago
In recent decades, the IMF was often seen as a global financial firefighter or aid catalyst. But providing financial assistance to countries in need has always been a means to an end. Today, the IMF is putting greater emphasis on promoting international financial stability by encouraging better policies.
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Picture ThisThe March of the CitiesPatrick Salyer and David E. Bloom
A chart-based look at the growth of cities around the world. By 2030, Africa, Asia, and Latin America are expected to account for more than 80 percent of the world's urban population.
(pdf file: 330 kb)

Back to BasicsWhy Real Exchange Rates?Luis A.V. Catão
Most people are familiar with the nominal exchange rate�the price of one currency in terms of another. But what about the real exchange rate, and what�s the distinction?
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Country FocusMexicoMexico enjoys sustained growth and stability thanks to sound economic policies. Its challenge now is to undertake further reforms to accelerate growth and reduce poverty while compensating for a likely decline in oil revenue.
(pdf file: 267 kb)

Straight TalkThe Rise of Sovereign Wealth FundsSimon Johnson
Simon Johnson, the IMF's Economic Counsellor and Director of the Research Department, looks at the growth of sovereign wealth funds and assesses some of the risks.
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